Binding Financial Agreements
No one likes to think their relationship won’t last but a Binding Financial Agreement can offer peace of mind.
A ‘binding financial agreement’ (BFA), or ‘financial agreement’ involves some of the most complex and strict requirements in family law that they must be prepared by experienced family lawyers. The Family Law Act 1975 allows married, de facto relationships or same-sex relationships to enter into financial agreements that are legally binding (enforceable). To become legally binding, the Family Law Act sets out the following requirements:
- Each party must have signed the agreement,
- Received independent advice from a family lawyer about the effect of the agreement on your rights
- Understand both the advantages and disadvantages of entering into the agreement.
A BFA agreement can be entered into at any point, including at the start, during or after a marriage or de facto relationship. Their primary purpose is to set out how assets and liabilities and other financial resources will be divided in the case of a relationship breakdown. It can also include spousal maintenance entitlements and adult child maintenance.